Banks

Company Overview of HBOS plc

Company Overview

HBOS plc, together with its subsidiaries, provides various banking and financial services in the United Kingdom and internationally. The company offers current and savings accounts, personal loans, credit cards, and mortgages in the retail market; and loans and capital market products to commercial, corporate, and asset finance customers. It also provides private banking services. The company was incorporated in 2001 and is based in Edinburgh, the United Kingdom. As of January 16, 2009 HBOS plc operates as a subsidiary of Lloyds Bank plc.

HBOS plc Key Developments

HBOS plc announced unaudited consolidated earnings results for the half year ended June 30, 2015. For the period, the company reported net interest income of £3,284 million against £3,160 million a year ago. Net trading income was £175 million against £195 million a year ago. Total income was £3,714 million against £3,712 million a year ago. Profit before tax was £1,485 million against £1,627 million a year ago. Profit attributable to equity shareholders was £1,195 million against £1,333 million a year ago. Net cash provided by operating activities was £1,038 million against £135 million a year ago. Purchase of fixed assets was £56 million against £80 million a year ago.

HBOS plc reported unaudited consolidated earnings results for the half year ended June 30, 2014. For the period, the company reported net interest income of £3,160 million against £2,890 million a year ago. Net trading income was £195 million against £5,106 million a year ago. Net fee and commission income was £236 million against £575 million a year ago. Profit before tax was £1,627 million against £2,424 million a year ago. Profit attributable to equity shareholders was £1,333 million against £1,804 million a year ago. Net cash provided by operating activities was £135 million against £2,263 million a year ago. Purchase of fixed assets was £80 million against £560 million a year ago.

FDIC Launches LIBOR Suit on Behalf of 38 Failed Banks

Mar 17 14

The FDIC filed a lawsuit against several of the banks and the British Banker's Association, accusing them of 'systematic' LIBOR manipulation and suppression. The agency seeks to recover the 'substantial losses' 38 failed banks sustained as a result of the defendants' alleged wrongful conduct. The list of plaintiffs in a March 14 complaint filed with the U.S. District Court for the Southern District of New York includes 38 failed banks. The FDIC as receiver for the closed banks seeks to recover the 'substantial losses' these institutions sustained as a result of the defendants' 'wrongful conduct.' The complaint states that the British Bankers' Association touted LIBOR as a simple, transparent benchmark calculated from competitive interest rates in the market for unsecured interbank loans. However, the FDIC alleges that during August 2007 to at least mid-2011, the bank defendants 'fraudulently and collusively suppressed USD LIBOR' to their own advantage. The FDIC claims that the BBA participated in the scheme to protect the revenue stream it generated from selling LIBOR licenses, and to appease the bank defendants who were on the LIBOR panel and were members of the BBA. Among the U.S.-based bank defendants named in the case is Bank of America Corp. and subsidiaries including Bank of America NA and Merrill Lynch & Co. Inc. The complaint also names Citigroup Inc. and subsidiaries Citibank NA and Citigroup Financial Products Inc., as well as JPMorgan Chase & Co. and several subsidiaries, including JPMorgan Chase Bank NA and Bear Stearns Capital Markets Inc. Europe-based defendants include Barclays Plc, Rabobank Nederland, Credit Suisse Group AG, Deutsche Bank AG, Portigon AG, WestLB AG, Royal Bank of Scotland Group Plc, Société Générale SA and UBS AG. HSBC Holdings Plc, U.S.-based unit HSBC Bank USA NA and Hong Kong-based subsidiary Hongkong & Shanghai Banking Corp. Ltd. are also on the list of defendants, as are Lloyds Banking Group Plc, Lloyds TSB Bank Plc and HBOS Plc. Canada's Royal Bank of Canada is named as a defendant. Defendants based in Asia include Norinchukin Bank and Bank of Tokyo-Mitsubishi UFJ Ltd. The FDIC is seeking full damages for all the economic, monetary, actual, consequential and compensatory damages that the closed banks suffered as a result of the defendants' wrongful conduct.

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